EXPLANATORY STATEMENT
Tariff Concession Instrument No. 0922448
Customs Act 1901
Background
Part XVA of the Customs Act 1901 (the Act) sets out a scheme under which Tariff Concession Orders (TCOs) may be made by the Chief Executive Officer of Customs (the CEO). A lower rate of customs duty applies to goods that are the subject of a TCO.
Under section 269F of the Act, a person may apply to the CEO for a TCO in respect of goods. If the CEO is satisfied that the application is not in respect of goods specified in section 269SJ of the Act, which sets out those goods that cannot be subject to a TCO, the CEO must decide whether the application meets the core criteria.
Section 269C of the Act provides that a TCO application meets the core criteria if, on the day on which the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269B of the Act provides that ‘goods produced in Australia’ has the meaning given by section 269D, ‘ordinary course of business’ has the meaning given by section 269E and ‘substitutable goods’ in respect of goods the subject of a TCO application, means goods produced in Australia that are put, or are capable of being put, to a use that corresponds with a use (including a design use) to which the goods the subject of the application can be put.
Subsection 269P(3) of the Act provides that if the CEO is satisfied that a TCO application meets the core criteria, the CEO must make a written order (a TCO) declaring that the goods the subject of the TCO application are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 (the Tariff) specified in the order applies.
McPherson's Consumer Products applied for a TCO in respect of certain rubberwood mat on 30 June 2009.
Instrument
TCO No 0922448 was made on 18 September 2009. It declares that those certain rubberwood mat are goods to which item 50 of Schedule 4 to the Tariff applies since the CEO was satisfied that no substitutable goods were produced in Australia. The general rate of duty on these goods is 5%. The rate of duty for the goods subject to the TCO is free.
Consultation
Subsection 269K(1) of the Act provides in part that as soon as practicable after accepting a TCO application as a valid application, the CEO must publish a notice in the Gazette which includes an invitation to any person who considers that there are reasons why the TCO should not be made to lodge a submission with the CEO. The CEO did not receive any submissions in response to this invitation.
Commencement
Subsection 269S(1) relevantly provides that a TCO is to be taken to have come into force on the day on which the application for the TCO was lodged. TCO No. 0922448 is taken to have come into force on 30 June 2009.
The TCO does not affect the rights of a person (other than the Commonwealth) as at the date of registration so as to disadvantage that person or impose liabilities on a person (other than the Commonwealth) in respect of anything done or omitted to be done before the date of registration. The rights of importers will be beneficially affected. Under paragraph 126(1)(r) of the Regulations, importers of such goods will be able to apply for a refund of duty on goods imported since the day on which the TCO is taken to have come into force. The TCO does not impose any liabilities on any person.
Overview
The Tariff Concession Instrument No. 0922448 was enacted in 2009 under the Customs Act 1901, with the objective of providing tariff concessions to certain goods by reducing their customs duty rates. This legislative instrument was introduced to address the issue of supporting Australian businesses by lowering the cost of importing specific goods, thus enhancing their competitiveness and potentially lowering prices for consumers. The instrument was enacted by the Chief Executive Officer of Customs, in accordance with the provisions of the Customs Act 1901, and is designed to ensure that tariff concessions are granted only when there are no substitutable goods produced in Australia. This approach aims to protect local industries while allowing for the benefits of lower tariffs on specific imported goods.
The instrument was made in response to an application by McPherson's Consumer Products for tariff concessions on certain rubberwood mats. After reviewing the application and determining that no substitutable goods were produced in Australia, the Chief Executive Officer of Customs issued Tariff Concession Order No. 0922448, effective from 30 June 2009. The order specifies that the general rate of duty on these rubberwood mats, which is normally 5%, is reduced to free, thereby providing a direct benefit to importers of these goods. The order does not impose any new liabilities or disadvantage any existing rights of parties other than the Commonwealth, and it allows for the potential refund of duties paid on these goods since the effective date of the order.
Scope and Application
The Tariff Concession Instrument No. 0922448 under the Customs Act 1901 applies to goods that are the subject of a Tariff Concession Order (TCO) made by the Chief Executive Officer of Customs. Specifically, this instrument pertains to certain rubberwood mats for which McPherson's Consumer Products applied for a concession on 30 June 2009. The Act applies to any person or entity seeking to import such goods, ensuring they benefit from the tariff concessions granted. The geographical reach of this legislation is national, as it is a Commonwealth Act. However, it excludes goods specified in section 269SJ of the Customs Act 1901, which lists goods that cannot be subject to a TCO. The application of the Act may be extended or restricted through subordinate instruments, although this particular TCO does not impose any liabilities on any person and does not affect the rights of persons as at the date of registration in a way that disadvantages them. The commencement date of this TCO is 30 June 2009, and it provides for a zero rate of duty on the specified rubberwood mats, down from the general rate of 5%.
Key Provisions
The Tariff Concession Instrument No. 0922448, made under the Customs Act 1901, pertains to the tariff concessions granted to specific goods, in this case, certain rubberwood mats. Pursuant to section 269F, McPherson's Consumer Products applied for a Tariff Concession Order (TCO) on 30 June 2009, which was subsequently granted on 18 September 2009. This TCO, as outlined in section 269P(3), specifies that these rubberwood mats are subject to item 50 of Schedule 4 of the Customs Tariff Act 1995, effectively granting them a duty-free status. Prior to this concession, the general rate of duty on these goods was 5%, but with the TCO, this rate is now reduced to zero.
The Act imposes several obligations on the parties involved. For instance, under section 269C, a TCO application is deemed to meet the core criteria if, at the time of application, no substitutable goods were produced in Australia in the ordinary course of business. This is further clarified by sections 269D and 269E, which define what is meant by "goods produced in Australia" and "ordinary course of business," respectively. Moreover, the Chief Executive Officer of Customs (CEO) must ensure that the application does not pertain to goods specified in section 269SJ, which are ineligible for a TCO. The CEO also has a duty to publish a notice in the Gazette inviting submissions from interested parties, as stipulated in subsection 269K(1), although in this case, no submissions were received.
Under the Customs Act 1901, breaches of the conditions or obligations set out in the TCO could lead to various penalties and consequences. However, the Explanatory Statement does not specify any particular offences, penalties, or civil or criminal consequences for breaches of the TCO itself. It is essential for the entities involved, such as McPherson's Consumer Products and other importers, to adhere to the terms of the TCO to avoid any potential repercussions. The Act and the TCO provide a structured framework for tariff concessions, ensuring that the rights and obligations of all parties are clearly defined and enforced.